Breakpoint Assessment Information
Note: The Breakpoint Self Assessment application is no longer functional; this page exists as an historical record.
In 2003 NASD required certain member firms that had sold front-end load mutual funds in the prior two years to conduct a self-assessment of breakpoint compliance and to report the results to NASD. Member firms that had more than a de minimis number of mutual fund transactions in Class A shares during the period beginning January 1, 2001, through December 31, 2002, followed a standard methodology provided by NASD—an online self-assessment. NASD extended the initial May 15, 2003, due date to June 13, 2003. Responses were required to be submitted to NASD by no later than June 13 as no further extensions were granted. Any firm that has not already submitted its self-assessment is subject to disciplinary or other action and must submit the self-assessment immediately.
Note: A unique PIN number to access the self-assessment was e-mailed individually to affected member firms.
Letter to Member Firms (PDF format 164 KB)
View letter from NASD Executive Vice President, Member Regulation, Robert C. Errico regarding the extension of the self-assessment deadline.
Letter to Small Member Fims
View letter from Small Firm Chairman, William Alsover regarding the extension of the self-assessment deadline.
Letter to Member Firms (PDF format 8 KB)
The attached is the template of a letter which was e-mailed to individual member firms that had sold front-end load mutual funds in the past two years. A personalized letter with a unique PIN number was e-mailed to each affected firm. Member firms that failed to complete NASD's initial Breakpoint Survey that was due January 31 received an e-mailed communication asking that the firm complete the Breakpoint Survey immediately, as well as this self-assessment.
- Questions regarding the assessment were directed to a toll-free number established by NASD, (800) 334-0668. Hours of operation for this Help Desk were 8:00 a.m. - 8:00 p.m., Eastern Time.
- Joint SEC/NASD/NYSE Report of Examinations of Broker/Dealers Regarding Discounts on Front-End Sales Charges on Mutual Funds (PDF file 362 KB)
- News Release: SEC, NASD, NYSE Release Findings Of Breakpoint Examination Sweep; Broker-Dealers To Review Transactions
- NASD Notice to Members 02-85: NASD Requires Immediate Member Firm Action Regarding Mutual Fund Purchases and Breakpoint Schedules
- NASD Investor Alert: Mutual Fund Breakpoints: A Break Worth Taking